The Nassau County Industrial Development Agency, commonly referred to as “the NCIDA,” is a public benefit corporation of the State of New York. Our mission is to support and promote economic development and employment opportunities in Nassau County by attracting new companies and industries, as well as assisting existing businesses to grow and expand.
Since 1969, New York State has allowed its counties and other local governments to establish Industrial Development Agencies (IDAs). These public benefit corporations exist to encourage local economic development projects by offering financial incentives to private companies, with the goal of increasing job opportunities and overall economic welfare in the area. There were 109 active IDAs in the State in 2018, including 56 county IDAs, one IDA for all of New York City, and 52 IDAs based in other cities, towns or villages.
The NCIDA is subject to oversight by several institutions including;
An independent, volunteer, non-compensated seven-member board of directors appointed by the County Executive and approved by the County Legislature,
The New York State Authorities Budget Office (ABO) where the mission is to make public authorities more accountable and transparent, and to act in the public interest consistent with their intended purpose,
Public Authorities Reporting Information System (PARIS) to which all IDAs report to the ABO on a routine basis throughout the year,
State and local elected officials who engage on economic development matters important to their constituents,
The New York State Comptroller’s Office
And local press and media which cover the NCIDA
The NCIDA is funded 100% by transaction fees paid by the companies receiving assistance, NOT through taxpayer dollars.
Industrial development is an active approach to positively influencing the business environment to foster growth, innovation and expansion. The goal is to increase high-quality, higher-paying jobs at stable, successful businesses and, ultimately, a stronger, more prosperous Nassau County.
The Chief Executive Officer (CEO), appointed by the board of directors, leads a team with deep expertise in private sector business, economic development and government.
By attracting new, high-quality companies to Nassau County, and helping our existing businesses to grow and expand, the NCIDA is making Nassau County a more prosperous and desirable place for our residents and future generations to live, work and play.
We work with various industries including food and beverage, life sciences, information & communication technology, media & entertainment, health, and professional services to name a few. We tend to work with projects that involve costs of $1 million or greater to make it cost beneficial for the company who will incur associated fees.
PILOTs, or “Payments-In-Lieu-Of-Taxes”, are one of the three main incentives an IDA can offer per NYS law with the others being a partial Mortgage Recording Tax Exemption and a full or partial Sales and Use Tax Exemption. A PILOT is a structured property tax payment schedule that companies, approved by the NCIDA, pay to the County, which is then disbursed to the appropriate taxing jurisdictions, including school districts, to support essential services such as law enforcement, emergency response, road and bridge maintenance, public health, education, and waste removal.
Although permitted by law, the NCIDA has not lowered the starting property taxes for any company, meaning that whatever tax payments are currently being received on the property is the starting point for any PILOT program.
By statute, the NCIDA is a tax-exempt entity and therefore any real property owned or controlled by an IDA is not subject to real property taxes. When a company acquires a property, the NCIDA takes a leasehold interest in the real property and the property becomes 100% exempt from real property taxes. The NCIDA then enters into a leaseback agreement with the company for which the company agrees to a PILOT program. Because the NCIDA is not a taxing authority these payments made by the company cannot be considered “taxes,” therefore they are considered payments “in-lieu of taxes.” These payments are billed and collected by the County; the NCIDA NEVER receives these funds. When received by the County, per NYS law again, these payments MUST be remitted to the local taxing jurisdictions in the SAME percentage allocation as if they were tax payments. In other words, since this NCIDA does not lower existing taxes and PILOTS are remitted back to the local taxing jurisdictions, there is no negative cash impact to the local Towns, Villages, School Districts, etc.
Generally, a company working under an agreement with the NCIDA is making a significant investment into the acquisition of land, building, and / or equipment to locate or expand the business. Like any other investment, the company, ownership, or the lender is seeking a Return on the Investment (ROI). These companies will weigh making the investment here in Nassau County against other counties and states. If making the same investment in another state yields a stronger ROI, and all other factors being equal, then that investment, along with the resulting jobs, will go elsewhere. It is no secret that the northeast region is a high-cost region in which to locate a business and PILOTs establish a structured property tax payment schedule which provides certainty that there will not be a reassessment of the property, thereby increasing taxes, during the term of the agreement.
In addition to staff expertise and a review by attorneys with a specialty in economic development and public finance, the NCIDA enlists independent, third-party specialists to calculate the economic impact of each proposed PILOT to make sure that a company is not unduly enriched.
The company receiving the benefit of a PILOT agreement makes a contracted covenant to create and / or maintain a specified number of jobs at various levels and salaries for each year of the agreement term. If in any year the company does not meet these job commitments, then the NCIDA has the option of terminating the agreement and recapturing past benefits. Any recaptured benefits are then remitted to the local taxing jurisdictions, the NCIDA is NOT permitted to retain these recaptured benefits.
PILOTs are a structured property tax payment schedule which include annual increases. Following the completion of the investment by the company, the subject property will immediately become more valuable which increases future tax payments. A PILOT agreement is a schedule of tax increases over a determined number of years that takes the real estate tax from current levels (pre-investment) to future levels (post-investment). For example, if there is vacant lot in your community, minimal taxes are being paid on the property. If a developer is approved to build on that vacant lot, it now becomes more valuable and will now be growing the tax base by paying more tax to the county, town, village and school district.
Without new investment, towns and cities are condemned to a slow and steady economic decline. NYS IDAs encourage businesses out of state to move to New York to invest. Site selectors, professional business relocation experts, advise businesses on the best options for business investment. Site selection is very competitive with states competing for this investment and the resulting jobs. It is no secret that Nassau County is a very expensive place to live. Without the help of an IDA, a business could not afford to move to or even stay within the County. IDAs require businesses to prove that “but for” the help of the IDA, a company could not afford to be located here.
Working with Us
Our website is a great resource on all things NCIDA. For the very latest, you can follow us here or on our other social media channels. Monthly board meetings are open to the public and are livestreamed on our YouTube channel at NassauidaLive.org. Please check our events calendar for future meeting notifications.
Wholesalers, distributors, manufacturers and real estate are just a few businesses that are eligible for benefits. Unfortunately, due to the laws and regulations establishing IDAs, we are unable to provide financial incentives to retail businesses. IDA’s were created to support Business-to-Business (BTB) companies. The NCIDA strives to support all Nassau County businesses by promoting other local resources available to small and mid-size businesses and always reminds everyone to “Shop Local!” Check out our partners page to see who we can connect you with.
We tend to work with projects that involve costs (property acquisition, equipment purchases, etc.) of $1 million or greater to make it cost beneficial for the company who will incur NCIDA and attorney fees. The NCIDA fee structure can be found here.
Located just 17 miles east of Manhattan, Nassau County, NY is positioned at the midpoint of the Northeast Corridor, halfway between Washington, D.C. and Boston. New York City is less than 30 minutes away via the Long Island Railroad, the largest commuter railroad in the U.S., and two international airports are located within minutes – JFK International and LaGuardia. Nassau County’s comprehensive infrastructure of airports, ports, rail and road connect businesses around the globe.
Situated just a short distance away from the business and financial capital of the world, Nassau County offers incomparable opportunities for businesses of all sizes and industries to thrive. From FinTech, media, healthcare and more, Nassau County has access to world-class talent and expertise to change the world.
Are you a business leader looking for a location with transit-oriented development? Place-making? Mixed-use development? Vibrant downtowns? Innovative industry? Corporate parks?
Or a prospective resident seeking beautiful beaches? World-class golfing and fishing? Nationally ranked K-12 schools? Nassau County boasts all of that and so much more.
Nassau County is the best of all things!